Deemed Ownership – Section 27: In the subsequent circumstances, an individual can be deemed to be the owner of the property even though not being the legal owners of the property: –
A person who transferred their property without sufficient concern to the individual’s spouse (contrarily than in consolidation with an agreement to live apart) their minor child (not being married daughter) is deemed to be the property owner.
Suppose a person transfers another property or asset and the individual’s spouse or minor child purchases house property from that asset. In that case, the before-mentioned person is not treated as a deemed owner.
For Example: – If Mr. Akash gifts Rs. 10,00,000 to his wife, and his wife purchases a house property from that Rs. 10,00,000, then Mr. Akash will not be treated as the deemed owner, and income from such property can be utterly taxable in the hands of the person’s wife.
If a buyer without getting the sale deed registered has taken possession of the property, is deemed to be the property owner.
An individual who is allowed to retain or take ownership of any building (or part thereof) in part enforcement of a contract of nature referred to in section 53A of the Transfer of Property Act, 1882, is also deemed as the owner of that building (or part thereof).
An individual who acquires any rights (excluding any rights by way of a lease for a period not exceeding one year or from month to month) in or with respect to any building (or part thereof) under any such transaction as is referred to in section 269UA(f) [i.e. Persons who purchase properties based on Power of Attorney if a person takes property for a term of a year or more on lease]
If a company/members/cooperative society to its shareholders allot a property, then technically, the company/cooperative society/members may be the owner. But the member/shareholder to whom property is allotted is deemed to be the property owner.